Increased Fees for SSC
~
s e. Sanitary Services Co.
MEMORANDUM
RECEIVED
AlJG' R 'l00";
, .....- ~._ ,5
CITY OF MERIDIAN
CITY CLERK OFFICE
. ,
TO: Mayor Tammy de Weerd
Members of the Meridian City Council:
Mr. Joe Borton, President
Mr~ Charlie Rountree, Vice President
Mr. Keith Bird
Mr. David Zaremba
FROM: Steve Sedlacek, Business Manager, Sanitary Services, Inc.
Bill Gregory, Operations Manager, Sanitary Services, Inc.
DATE: August 6, 2007
SUBJECT: Annual Rate Adjustment for Solid Waste Collection Services
Introduction
Annually, solid waste collection rates areadjust~ in-accordance with Section 21 of our
contract with the City of Meridian with an effective date of October 1. Typically this
involves adjusting rates based upon the change ,in the Consumer Price Index (CPI).
This year, landfill tipping fees at the Ada County Hidden Hollow Landfill are also
increasing effective October 1. This memorandom presents the solid waste collection
rate adjustment. based' upon the change to the CPI and the increased landfill. tipping
fees. . .
Landfill Fee Changes
Effective October 1, 2007 the Ada County Commissioners are raising the disposal fees
at the Hidden ,Hollow Landfill. Ada County Resolution No. 1474 is attached to, this
memorandum. Table 1 indicates the current and future (October 1) rate structure for all -
waste entering the Ada County Hidden Hollow Landfill.
.. P.o. Box 626~ Meridian, ID 83680 Phone 208/888.3999 Fax 208/888.5052
'-1 Printed on Recycled Paper
Table 1
Ada- County Landfill, Rates
Rate Change Effective October 1, 2007
Current Rates Future Rates % Increase.
Wood Waste $1.50 per cubic yard $ 2.50 per cubic yard 67%
- Noncompacted/loose $ 3.00 per cubic yard $. 5.00 - per cubic yard 67%
ConstructionlDemolition $ 6:00 per cubic yard $ 10.00 .. per cubic yard _ 67%
Compacted $6.00 per cubic yard $ 10.00. ,per cubic yard - 67%
Tires $2.00 Each $ 3.00 Each 50%.
Refrigeration Units $12.00 Each $ 20.00 Each 67%
Asbestos $25.00 per cubic yard $ 40.00 per cubic yard 60%
As you can see from Table 1 all waste streams that are collected by Sanitary Services
are increasing 67 percent. All - residential and commercial waste from Meridian is
categorized as compacted waste. .In 2006 Sanitary Services paid approXimately $1.2
million in disposal fees ,to Ada County. Had this new rate structure been in effect in
, 2004, fees would have. been in about $2.0 million.
Our contract with the City of Meridian allows us to pass through to the consumer the
effects of landfill.rate increases . that we have no control over. Also, these costs are
specifically eliminated from any annual CPI rate increases since they are controlled by
Ada County. "., . '.
To modify our rates accurately we determined the proportion of each rate that is
disposal. Current arialysis indicates that residential rates are 15% disposal .and
commercial rates are 22% disposal. Construction waste collection invoices disposal
separately so no analysis is required for toat waste stream. Therefore, for a residential
customer that is paying $11.25 per month, the amount attributable to disposal is $1.69
per month ($11.25* 0,15= $1.69). With the disposal of this type of waste increasing ..
67% the new disposal rate per house per month increases by $1.13 from $1.69 to $2:82. _
This incrementalincrease ($1.13) has to be adjusted further to account for the City of
Meridian's 6% franchise fee, adding an additional $0.07 to each residential monthly bill.
Therefore. the increase in residential rates due to landfill fee increases is $1.20. We
have completed similar calculations for commercial rates as well.
CPI Adjustment Methodology
Our contract requires that our costs be adjusted annually based upon the "net
percentage of change in the Consumer Price Index for the Pacific Northwest." (The CPI
is no longer published for the Pacific Northwest so we have used the CPI for the
Western Region of the United States.) Further, w~ reduce the. calculated change in the.
. CPI by ten percent to account for aspects of the CPI..that do not 'apply to our business.
Attached · to this memorandum is the CPI printout from the - U.s. Bureau of Labor
Statistics. The CPI for June one year ago was 206.4 and this year it is 212.68. The net
percentage change between the two values is 3.04%. Then, reducing this number by 10
percent yields a CPI adjustment of 2.74% that is applied to o.ur costs.
Using similar calculations as above the (:urrent residential rate of $11.25 is 15% landfill
fee and 6% franchise fee. This leaves 79%, or $8.89 to be adjusted by the CPI. The
.CPI Increase is therefore $0.24 ($8,89 * 0.0274). This incremental increase ($.24) has
to be adjusted further to account for the City of Meridian's 6% franchise fee, adding an
additional $0.01 to each residential monthly bill. Therefore.. the increase in residential
rates due to the annual CPladiustment is $.25. We have completed similar calculations
.lor commercial rates as well.
I
Results of Rate Change
The current and proposed rates are presented in tabular form' in an attachment to this
memorandum. The residential rate. will increase by $1.45 per month for unlimited weekly
service with curbside recycling: .
The percentage of. change by various categories of rates is shown if) Table 2. The
percentages vary with the different types of systems that.we operate because each has
,a different percentage that is disposal.
Table 2
Percentage of Rate Change by System
Residential rates
Commercial can rates-
Commercial container rates
Commercial com actor rates
Tern ora container rates
Miscellaneous services
Rolloff .Services
12.9%
19.2%
19.1%
29% - 36%
2.81% -19.1%
25% - 47%
2.74%
A more detailed analysis is available to the Mayor, Councilor City staff upon request. It'
further information is necessary we would appreciate treating the information as
"business confidential."
"!',
Propdsed Solid Waste Collection Rate Changes
ProposE!d Rates Effective 10/1/07
Sanitary Service Inc.
Current Rlite Proposed Rate
Structure Structure
ReSidential $ 11.25 $ 12.70
Toter Cliuts $ 2.70 $ 2.75
Habitual Lllte Cari Fee $ 5.00 $ ,5.00
, Commercial Cans (Current) 1/wk 2/wk 3/wk
1 - 3 cans $ 18.00 $ 36.00 $ 54.00
4 - 6 cans $ 36.00 $ 72.00 $ 108.00
7 c 9 cans $ 45.00 $ 90.00 $ 135.00
Commercial Cans (Proposed) , 1/wk 2/wk. 3Iwk
.1,~ 3 cans ,$ 21:46 $ 42.92 $ 64.37
4 - 6 cans $ .42.92 $ .85.83 $ 128.75
7 ~ 9 cans $ 53.64 $ 107.29 $ 160.93
Commercial Containers (Current) 1/wk 2/wk' 3/wk 4x1wk 5/wk 6/wk'
,11/2 Yd $ 67.12 $ 95.71 $ . 123.79 $ 166.07 $ 208.25 $ 250.44
3Yd $ 70.34 $ 113.93 $ 157.59 $ 207.63 $ 272.94 $ 330.64
6Yd $ 109.74 $ 177.30 $ 244.78 .$ 326.39 $ 408,03 $ 489.64
8Yd $ 130.28 $ 202.72 $ .' 270.22 $ 349.52 $ 434.01 $ ,514.73
Commerci~1 Containers (Proposed) 1/wk 2/wk . 3/wk 4x1wk . 5/wk 6/wk
1 1/2 Yd $ 79.93 $ 113.97 $ . 147.41 $ 197;76 $ 247.99 $ 298.23
3Yd $ 83.76 $ 135.67 $ 187.66 $ 247.25 $ 325.02 $ 393.73
6Yd $ 130.68 $ 211.13 $ 291.49 $ 388.67 $ 485.89. $ 583.07
8 Yd $ 155.14 $ 241.40 $ 321.78 $ 4.16.21 $ 516.83 $ 612.95
Commercial Compactors Current prOposed
2Yd $ 33.51 $ 43.30
3Yd $ 44.75 $. 59.28
4 Yd $ 56.30 $ 75.59
5Yd $ 67.90 $ 91.94
6Yd' $ 79.00 $ . ,107.78,
8Yd $ 106.55 $ 144.95
Temporary Container Service Current Proposed
. Delivery . $ .19.16 $ 19.70
Daily Rental c 3 Yd $ 0.72 $ 0.75
Monthly Rental - 3 Yd $ 19.16 $ 19.70 .
Extra Dump 3 Yd $ 21.80 $ .. 25.96
Extra Dump 6 Yd $ 34.25 $ 40.79
Extra Dump 8 Yd $ 44.10 $ 52.51
Miscellaneous Collection ServiceS
Tires
Refrigerators
Overflow Cleanup
$, 2.72 $ 4.00
$36.88 $ 46.05
$12.40 for 5f!1in $12.75 for 5 min
Roll Off Services (Current)
$47.70Ihaul + disposal + franchise fees (6 -10 CYcontainers) "
$106:75/haul + disposal + franch,ise fees (20 - 40 CY container:s, Weekdays)
$161.75/haul + disposal + franchise fees (20 - 40 CY containers, Weekends)
$132.00Ihaul + disposal + franchise fees (asbestos - Ada County)
, $21 O.OO/haul+ disposal + franchise fees (asbestos - Idaho Waste Systems)
Extra services, $ 82.38 per hour
Roll Off Services (Proposed)
$49.00Ihaul + disposal + franchise fees (6 - 10 CY containers)
$109.65/haul + disposal + franchise fees (20 - 40 CY containers, Weekd'ayS)
$166.20/haul + disposal + franchise fees (20 - 40 CY containers, Weekends)
$135.60/haul + disposal + franchise fees (aSbestos- Ada CountY)
$215.75/haul + disposal + franchise fees (asbestos -Idaho Waste Systems)
Extra services $ 84.65 per hour
Roll Off Container Rental (Current)
,6Yd $ 1.38 per day $ 41.37 per month
8Yd $ 1:79 per day " $ 53.63 per month
10 Yd $ 1.99 per day $ 59.76 per month '
20Yd $ 2.40 per day $ 68.71 per month
30Yd, $ 3.00 per day $ 83.99 per month
40Yd' $ 3.27 per day $ 95.98 per month
Roll Off Container Rental (Proposed) $ 1.45 per day $ 42.50 per rrionth
6Yd
8 Yd $ 1.85 per day $ 55.10 per month
10Yd $ 2.05 per day $ 61.40 per rrionth
20Yd $ 2.50 per day , $ 70.60 per month
30 Yd $ 3.10 per day $ 8~.30 per month
40Yd $ 3.40 per day $ 98.60 ' per month
Landfill Rates with Franchise Fees (Current)
Size, SW Dump Demo Dump Compact Dump Wood Waste
6Yd $ 19.08 $ 38.16 $ 9.54
8 Yd $ 25.44 $ 50.88 $ 12.72
10Yd $ 31.80 $ 63.60 $ 15.90
20Yd $ 63.60 $ 127.20 $ 127.20 ,$ 31.80
30Yd" $ 95.40 $ 190.80 $ 190.80 $ 47.70
40 Yd" $ 127.20 $ 254.40 $ 254.40 $ 63.60
LandflllRates with Franchise Fees (Proposed)
Size SIN Dump Demo Dump' , Compact Dump Wood Waste,
6,Yd $ 31.80 $ 63.60 $ 15:90
8Yd $ 42.40 $ 84.80 $ 21:20
10Yd $ 53.00 $ 106.00 $' ' 26.50
20 Yd $ 106.00 $ 212.00 $ 212.00 $ 53.00
30 Yd $ 159.00 $ 318.00 $ 318.00 $ 79.50
40Yd' $ 212.00 $ '424.00 $ 424.00 $ 106.00
Voluntary Commercial Cardboard Collection (Current)- 3 CY containers'
. . 1 x1week . 2 xJweek .
$ 38.00 $ 68.00$
$ 68.pO $ 98.00 $
1 cOntainer
2 containers.
. . '
Voluntary Commercial Cardboard Collection (Proposed) - 5 CY containers
. 1 xlweek 2 x/week .
1 container. $ 39.00 $ 70.00 $
2 containers $ 70.00 $ 100.00$
3 xlweek
98.00.
128.00
. 3 xlweek
100.00
130.00
ADA COUNTY
SOIID W'ASTE MANAGEMENT DEPARTMENT
200 West Front Street, Boise, ID 83702
(208) 577-4725; FAX: (208) 577-4729
July I, 2007
Re: Landfill Fee Rate Increase
Dear Landfill Customer,
To meet the demands of a modern and efficient solid waste disposal system,
Ada County must raise the disposal fees paid at the landfill. A number of
factors influenced the Board of County Commissioners' decision to adjust the
landfill rates, including increased costs for environmental (air and water)
compliance, increased costs for landfill operations, increased costs associated
with hazardous waste management, and increased costs for landfill
construction.
Before deciding to increase landfill fees, the Board asked the Solid Waste
Management Department to carefully examine ways to reduce expenditures
and other costs. Steps at reducing overall department spending were
implemented where feasible and appropriate. The department also looked at
programs cost reductions or programs elimination in the attempts to lessen the
impacts of the increased costs. However, the only significant way to cut deeply
enough would involve elimination of programs, such as household hazardous
waste collection and management, or wood waste recycling. The tipping fees
collected at the landfill heavily subsidize these programs. The programs are
very successful and very popular with the public and they make environmental
sense to continue. Therefore, the Board decided to leave the programs in place
and to increase the fees to landfill users.
Page 1 of 2
Effective October 1, 2007, landfill~tipping fees shall be adjusted as follows:
Material Existing New Price per:
Fee Fee
Asbestos $25.00 $40.00 Cubic Yard ($80.00
min.)
Certifi.cate of Disposal $15.00 $20.00 Each
Compacted Waste $6.00 $10.00 Cubic Yard
Contaminated Soil $6.00 $10.00 Cubic Yard
Mobile Home 8' Wide $2.25 $3.50 Linear Foot
Mobile Home 10' Wide $3.00 $4.50 Linear Foot
Mobile Home 12' Wide $4.75 $6.00 Linear Foot
Mobile Hume 14' Wide $4.50 $6.75 Linear Foot
Non-compacted Waste $3.00 $5.00 Cubic Yard
Refrigerator! freezer! air $12.00 $20.00 Each
condi honer
Tires $2.00 $3.00 Each
Construction Debris $6.00 $10.00 Cubic Yard
Wood (Recycled) $1.50 $2.50 Cubic Yard
Minimum Charge $6.00 $10.00
Ada County and the Solid Waste M'anagement Department understand the
seriousness of rate increases. Where possible, costs have been cut and
expenditures reduced. However, these efforts fail to meet the demands placed
on the solid waste disposal system by increased demands and regulations. The
County wishes to thank you for your understanding and for your participation
in the solid waste management system in the County. The County looks
forward to continued partnership and excellence in service to the citizens of
Ada County.
ReSRectfull y,
~l
.' ,);;1,,-: . .~: .
/lLl{ ,- .
'(' .' , "
, . .~ '." '" ,
Dave Nea, D1:re tor
Ada County Soli' Waste Management Department
Page 2 0[2
RESOLUTION NO. 1474
AT A MEETING OF THE BOARD OF ADA COUNTY COMMISSIONERS,
STATE OF IDAHO, ON THE 26th DAY OF JUNE, 2007, THE FOLLOWING
RESOLUTION WAS UNANIMOUSLY ADOPTED, TO WIT:
WHEREAS, the last resolution setting tipping fees was adopted on May 3, 2005
(Resolution # 1314); and
WHEREAS, in order to offset the increased costs incurred for hazardous waste
management and wood waste recycling at the Ada County landfill, an amended fee
schedule needs to be adopted; and
WHEREAS, in order to offset increased expenditures for expansion of the landfill
gas collection system to comply with current requirements of Title V of the 1990 Clean
Air Act Amendments ~~ 501-507 of the Clean Air Act and implementing regulations at
40 C.F.R., Part 70, as well as regulations found in IDAPA 58.01.01.300-386 and
promulgated pursuant to Idaho Code ~~ 39-105, 107; and
WHEREAS, in order to offset the increased costs incurred for the repair of the
Old Seamans Gulch landfill; and
WHEREAS, the County will, for a time, be operating two landfills. With the
projected closure of the existing landfill, the County is anticipating the costs of physical
construction and long-term care of a closed facility;
NOW, THEREFORE, BE IT RESOLVED, that pursuant to Ada County Code
Section 5-2-4, the following fee schedule identified as Exhibit A to this Resolution for
Ada County Solid Waste Management Department, shall be effective on the 1 st day of
October, 2007:
BE IT FURTHER RESOLVED that Resolution # 1314 is hereby repealed in its
entirety .
RESOLUTIONNO. 1474 - PAGE 1 of3
http://www2.adaweb.netlcomagen.nsf/7d355ae74b7e99ae872567a60078t23c/c65eSabeb5al398e872572bc0062eOfc/$file/resolution no. 1474.
resolution for 07..08 increase oflandfdl fees.doc
APPROVED AND ADOPTED this 26th day of June, 2007.
Board of Ada County Commissioners
By:
Fred Tilman, Chairman
By:
Paul R. Woods, Commissioner
By:
Rick Yzaguirre, Commissioner
ATTEST:
J. David Navarro, Ada County Clerk
RESOLUTION NO. 1474 - PAGE 2 of3
http://www2.adaweb.nettcomagen.nsf/7d355ae74b7e99ae872567a60078c23dc65e8abebSa1398e872572bc0062eOfcl$file/resoJution no. 1474-
resolution for 07-08 increase oflandfill fees.doc
EXHIBIT A
Material
Tipping Fee
Minimum Charge $10.00
Compacted Waste $10.00 per cubic yard
Non~compacted Waste $ 5.00 per cubic yard
Construction Debris/Appliances $10.00 per cubic yard
Fuel Contaminated Soil $10.00 per cubic yard
Wood Waste1 $ 2.50 per cubic yard
Refriyeration Units2 $20.00 each
Tires $ 3.00 each
Asbestos (minimum, including disposal certificate) $80.00
Asbestos $40.00 per cubic yard
Mobile homes ( 8 ft. wide) $ 3.50 per linear foot
Mobile homes (10 ft. wide) $ 4.50 per linear foot
Mobile homes (12 ft. wide) $ 6.00 per linear foot
Mobile homes (14 ft. wide) $ 6.75 per linear foot
Disposal Certification $20.00
Fee ReductionlWaiver4 -0-
1. Recyclable wood loads must contain only wood waste. Individuals depositing
loads containing other waste materials (mixed waste) will not receive the recyclable
wood rate. Wood waste will include structural lumber, plywood, siding, pallets, utility
spools, brush, and limbs. Maximum Length - 8', Maximum Diameter - 20".
2. Includes all units with refrigerant and compressors (i.e., refrigerators, freezers, and
air.conditioners). Limit - 2 per household per year. No commercial loads accepted.
3. Limit - 4 tires per vehicle per visit, cannot exceed 17" rim diameter
4. The Board of Ada County Commissioners may, from time to time, under
circumstances deemed appropriate, authorize a fee reduction or fee waiver.
RESOLUTION NO. - PAGE 3 of 3
http://www2.adaweb.netlcomagen.nstnd355ae74b7e99ae872567a60078c23c1c65e8abeb5a1 398e872572bc0062eOfc/$file/resolution no. 1474 -
resolution for 07-08 increase of landfill fees.doc
BmeauofLaoorSmtisticsDam
Page 1 of 1
."11':"" U.S. Department of Labor
'<, ,,_'0' Bureau of Labor Statistics
""'-, ' Bureau of Labor Statistics Data
www.bls.gov ..A
IRS Home! Programs & Surveys I Get Detailed Statistics I Glossary I What's New! Find It! In DOL
Advanced Search I A-Z Index
Change Output Options: From: I 1997 ~ To: I 2007 .=f ~
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D,lta extracted on: August 3,2007 (4:48:17 PM)
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Consumer Price Index - All Urban Consumers
Series Id; CUUR0400SAO
Not Seasonally Adjusted
Area. ; West urban
Item; All items
Ba,se period: 1982-84=100
Year Jan Feb Mar Apr May lun 1ul Aug Sep Oct Nav Dee Annual BALH HALF2
1997 159.6 160.1 160.8 161.1 161.1 161.0 161.1 161.5 162.1 162.8 162.8 162.8 161.4 160.6 162.2
1998 163.0 163.2 163.3 163.6 164.3 164.2 164.3 164.8 165.1 165.5 165.8 165.8 164.4 163.6 165.2
1999 166.4 166.9 167.3 169.0 168.7 168.3 168.9 169.5 170.0 170.4 170.4 170.5 168.9 167.8 170.0
2000 171.0 172.0 173.5 173.7 174.0 174.3 175.2 175.9 176.6 177.2 177.2 177.1 174.8 173.1 176.5
2001 178.3 179.3 180.1 180.4 181.3 182.0 182.0 181.9 182.5 182.5 182.3 181.6 181.2 180.2 182.1
2002 182.4 183.2 184.0 185.1 184.8 184.5 184.7 185.3 185.7 185.8 185.8 185.5 184.7 184.0 185.5
2003 186.6 188.1 189.3 188.8 188.5 188.1 188.4 189.2 189.6 189.4 188.5 188.3 188.6 188.2 188.9
2004 189.4 190.8 192.2 192.3 193.4 193.3 192.9 193.0 193.8 195.0 195.1 194.2 193.0 191.9 194.0
2005 194.5 195.7 197.1 198.6 198.8 198.0 198.6 199.6 201.7 202.6 201.4 200.0 198.9 197.1 200.7
2006 201.7 202.7 203.8 205.3 206.9 206.4 206.7 207.5 207.8 207.1 206.3 206.2 205.7 204.5 206.9
2007 207.790 208.995 210.778 212.036 213.063 212.680 210.890
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U.S. Bureau of Labor Statistics
Postal Square Building
2 Massachusetts Ave., NE
Washington, DC 20212.-0001
Phone: (202) 691-5200
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8/3/2007